Rents exist in a rental market, not a vacuum. If a landlord trying to recoup his raised taxes brings rent up past market, he will have zero income. The tenants hurt will be the ones that the less realistic landlords learn this on.

On the other hand, taxes elsewhere in town will go down, making them even more competitive for tenants should they choose to reduce rents. But they probably won't, since DT will be overpriced anyway.

JCResidente wrote:I noticed that JC real estate listings on Zillow and other sites have sky rocketed. I am talking about 1000% plus supply flooding the market.

Yeah, not so much.

For all JC, listings that are 7 days old or less: 76 homesListings 14 days old or less: 141Listings 30 days: 244Listings 90 days: 452

Oh, and there are 113,000 housing units in Jersey City.

I'm pretty sure that:a) adding 76 new listings in a week is not a "1000% increase"b) 76 new listings is a drop in the bucketc) this is not going to make a dent in the JC market

Also, here in the real world, the reval is not all negative; thousands of homes will see property tax cuts, which means the value of those homes is about to increase.

Quote:

My prediction, We are venturing into 10+ years of Jersey City real estate depression.

<< rolleyes >>

Sorry, but that is sheer nonsense.

1) The economy is fine2) The worst economic and real estate downturn in 70 years didn't cause a "10 year RE depression"3) Inventory in JC (especially DTJC) is incredibly tight3a) JC is still 75% or more rentals4) Interest rates will not get so high that it destroys the JC market5) JC doesn't rely heavily on foreign buyers, certainly nothing compared to the high end NYC RE market6) JC is still a bargain compared to NYC7) As mentioned, it's not like every single home in JC is about to get whacked with a 300% property tax increase8) Anyone who sells right now still has to live somewhere, and if they want to live in the same area, that's going to maintain prices on mid-range properties (e.g. if you own a $2m home, and want to live in JC, you will now go after $1.5m homes, whose prices will go up if there's competition for it)

Quote:

Everyone invests for one reason, Returns!!!! There is no meat left in our RE market.

Returns is only one of many reasons to buy. They want to live in a specific area; renting is less secure, costs more every year, and does not build equity; they want more latitude to modify the home.

But hey, if you want to dump everything you own at a cut-rate price, who are we to stop you?

if downtown is going to plummet due to reval, shouldn't other areas at least flatline or rise due to it?Quote:

JCResidente wrote:I noticed that JC real estate listings on Zillow and other sites have sky rocketed. I am talking about 1000% plus supply flooding the market.

JC RE Honeymoon over! My prediction, We are venturing into 10+ years of Jersey City real estate depression. Don't expect foreigners to bail us out, nor our next door multi-millionaire investors. Everyone invests for one reason, Returns!!!! There is no meat left in our RE market.

pizzaboye wrote:Downtown renter here. My landlord said he's raising the rent by $300/mo due to the re-val. So, now we're moving out of JC. Bye!

That's not that bad. Some are seeing $1000+ increases.

"Some" who? Give specific examples.

It's anecdotal but a friend of mine is an owner downtown. his costs are going by more than $1000 a month and he doesn't know if he can pass it through to his tenant or not, legally. Someone on the other thread brought this up. It is an unreasonable increase of your costs went up by as much?

What seems to be forgotten is for the chunk of the market that pays its taxes under PILOTs, nothing much has changed. Sure, the land tax is being raised astronomically (as much as ten times), but that is a very small piece of the overall bill. Rising interest rates and the new tax bill will soften the market, to be sure, but otherwise it's business as usual.

For newer, long term abatements, sure. But many are already midway through shorter abatement cycles. Any smart investor sees the bigger picture and would stay far away. On a net basis, this is a disaster for DTJC.

What seems to be forgotten is for the chunk of the market that pays its taxes under PILOTs, nothing much has changed. Sure, the land tax is being raised astronomically (as much as ten times), but that is a very small piece of the overall bill. Rising interest rates and the new tax bill will soften the market, to be sure, but otherwise it's business as usual.

I noticed that JC real estate listings on Zillow and other sites have sky rocketed. I am talking about 1000% plus supply flooding the market.

JC RE Honeymoon over! My prediction, We are venturing into 10+ years of Jersey City real estate depression. Don't expect foreigners to bail us out, nor our next door multi-millionaire investors. Everyone invests for one reason, Returns!!!! There is no meat left in our RE market.